GE (version 0.2.6)

gemCanonicalDynamicMacroeconomic_4_3: A Canonical Dynamic Macroeconomic General Equilibrium Model (see Torres, 2016)

Description

A canonical dynamic macroeconomic general equilibrium model (see Torres, 2016, Table 2.1 and 2.2).

Usage

gemCanonicalDynamicMacroeconomic_4_3(
  discount.factor = 0.97,
  depreciation.rate = 0.06,
  beta.lab.firm = 0.65,
  beta.lab.consumer = 0.6,
  ...
)

Arguments

discount.factor

the intertemporal discount factor.

depreciation.rate

the physical depreciation rate of capital stock.

beta.lab.firm

the share parameter for labor of the Cobb-Douglas production function of the production firm.

beta.lab.consumer

the share parameter for labor of the Cobb-Douglas utility function of the consumer.

...

arguments to be to be passed to the function sdm2.

Value

A general equilibrium (see sdm2)

Details

A general equilibrium model with 4 commodities (i.e. product, labor, capital and equity shares) and 3 agents (i.e. a production firm, a consumer and a capital-leasing firm).

References

Torres, Jose L. (2016, ISBN: 9781622730452) Introduction to Dynamic Macroeconomic General Equilibrium Models (Second Edition). Vernon Press.

Examples

# NOT RUN {
ge <- gemCanonicalDynamicMacroeconomic_4_3(
  numberOfPeriods = 5000,
  priceAdjustmentVelocity = 0.03
)

## business cycle
de <- gemCanonicalDynamicMacroeconomic_4_3(
  numberOfPeriods = 1000,
  priceAdjustmentVelocity = 0.15
)

## A tax rate policy is implemented from the 600th period to stabilize the economy.
ge <- gemCanonicalDynamicMacroeconomic_4_3(
  numberOfPeriods = 1500,
  priceAdjustmentVelocity = 0.15,
  policy = Example9.10.policy.tax
)

matplot(ge$ts.z, type = "l")
plot(ge$policy.data, type = "l") # tax rates
# }